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The Organisation of Petroleum Exporting Countries has raised its expectations for global oil demand next year, saying the greater than expected growth could finally erode the chronic market oversupply.

The cartel’s latest monthly report shows its third consecutive upward revision for oil demand, in a sign of growing confidence that oil prices will recover.

The group said its deal with other major oil producers to cut the glut of oil that dragged prices to 12-year lows in 2016 had already begun to bring the market back into balance. At the same time global demand for Opec supplies is set to rise to 33.06 million barrels a day next year, which is 230,000 bpd higher than its previous forecast.